The automotive turbocharger market is projected to grow from USD 15.2 billion in 2024 to USD 22.9 billion by 2030, at a CAGR of 7.1%. The growth of the automotive turbocharger market is propelled by harsh emission regulations and shifting consumer inclination for high-performance vehicles. As the automotive industry is transitioning from diesel to gasoline light-duty vehicles and a surge in vehicle hybridization, there could be a promising opportunity for turbocharger manufacturers in gasoline and hybrid variants.
Market Dynamics
DRIVER: Stringent emission regulations and a surge in sales of gasoline-powered passenger vehicles.
There are various reasons for the decline in the growth of diesel engines. Among them are escalating fuel costs, heightened concerns about global warming, and the higher price tags associated with diesel vehicles compared to petrol counterparts. However, the increasing popularity of gasoline-powered vehicles is driving the demand for turbochargers tailored for petrol engines. Turbocharger manufacturers are thus likely to shift their focus and allocate resources toward developing and producing gasoline turbochargers to meet this rising demand. In countries such as India, South Korea, and Indonesia, the demand for diesel vehicles has slowed, while there has been an increase in demand for petrol engines. Various emission standards, such as Euro 6, China VI, and PROCONVE P-8, have further stimulated the market for gasoline engines. Consequently, this drives the production of turbochargers for passenger cars and contributes to a cleaner environment with reduced pollution.
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OPPORTUNITY: Development of electric turbochargers
The emergence of electric turbochargers presents a significant opportunity in the automotive industry. These innovative turbochargers eliminate turbo lag and deliver enhanced power and improved fuel efficiency. Integrating a high-powered turbine with a motor-driven compressor allows electric turbochargers to engage instantly when the driver accelerates, offering seamless performance.
With fewer technical challenges compared to traditional models, electric turbochargers offer a range of benefits. Key industry players like BorgWarner (US), Garrett Motion Inc. (Switzerland), and IHI Corporation (Japan) have successfully introduced their 48V e-turbochargers, renowned for their fuel efficiency and superior power output. Garrett Motion is developing e-turbos for mass-market passenger vehicles, with a claimed fuel efficiency improvement of up to 10%. These e-turbos have the potential to reduce NOx emissions by up to 20% in diesel engines, with most cases seeing a fuel efficiency improvement of about 2-4%. Other manufacturers, such as Mitsubishi and BorgWarner, are also advancing their electric turbo technology, reflecting the industry’s shift towards e-turbo development. Thus, the demand for electric turbochargers will grow in the coming years, signaling a promising opportunity for the automotive sector.
VGT Turbochargers are predicted to be the largest segment during the forecast period.
The VGT turbochargers offer several advantages, such as enhanced low-end torque, minimized turbo lag, and precise boost control for varied engine load and speed. Due to this, it is widely used across the globe to improve engine performance, increase fuel efficiency, and meet stringent emission regulations. Due to its versatility, the VGT turbochargers have widespread adoption across all vehicle types, from passenger and commercial vehicles to heavy-duty trucks and buses. Major players such as BorgWarner Inc., Garrett Motion Inc., and Cummins Turbo Technologies are investing in enhancing the performance of VGT technology by integrating sophisticated electronic control units (ECUs) for improved performance, efficiency, and reliability.
The agricultural tractors will be the fastest growing turbochargers market in the off-highway application.
The demand for turbochargers in the higher HP tractors has kept rising in recent years. These higher HP tractors (>80HP) are usually fitted with turbochargers due to their ability to increase engine power without significant additional displacement. This is particularly useful for large-scale agricultural operations, where greater horsepower is necessary to handle heavy loads or operate large implements efficiently. Europe is the largest market for high-powered tractors due to the increasing traction of tractors with high-pulling power and the growing demand for commercial agriculture. North America and some parts of Asia also have lower demand for higher HP tractors, whereas large-scale agriculture and mechanization are prevalent in these regions. Major players, such as John Deere, CNH Industrial, and AGCO Corporation, continue to invest in research and development to enhance the capabilities of turbocharged tractors, aiming to meet the evolving needs of farmers worldwide. John Deere 8R Series, Case IH Magnum Series, Massey Ferguson 8700 Series, John Deere 9RX Series, New Holland T9 Series, and Kubota Corporation M7 Series are some tractors equipped with turbochargers. Hence, with the growing sales of high-HP tractors for commercial farming of 100 hectares and larger farmlands which can easily handle a wide range of implements such as rakes, scrapers, and spreaders, the demand for turbochargers is also expected to grow in the future.
Asia Pacific is estimated to be the dominant region in the automotive turbocharger market.
Asia Pacific is the largest automotive market, and China, Japan, and India contribute >85% of the overall vehicle production in the region. The region also has a higher demand for smaller and compact cars, with more than 80% of the passenger cars running on gasoline. Further, the automotive turbocharger market expansion in countries like China, India, South Korea, and Japan is primarily driven by growing demand for gasoline engines incorporating turbocharged gasoline direct injection (TGDI) technology. Among these, China has become a key market for automotive turbochargers in the Asia Pacific region, with TGDI engines followed by Japan, South Korea, and India. The stricter vehicle emission norms are driving the automakers in this region to adopt more fuel-efficient technologies. The Governments of major countries, India and China have made it mandatory for all automakers to comply with the BS6 Phase 2 and China 6 emission norms respectively. Under the China 6 standards, the PM emissions limit for gasoline-powered vehicles is 4.5 mg/km, while diesel vehicles must emit no more than 0.5 mg/km. In India, the diesel vehicle emission limits are lowered by 68% and the gasoline vehicle emissions are lowered by 25%. Thereby, the demand for GDI engines will be growing in this region which will drive the automotive turbocharger market.
Key Market Players:
Major regional automakers such as Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), The Hyundai Motor Company (South Korea), Mitsubishi Motors Corporation (Japan), and Nissan Motor Co. Ltd. (Japan) have been using turbocharging technology in some gasoline engines to improve the performance and fuel efficiency of the vehicles.
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